Bumper results for Microsoft

Microsoft has announced record sales of $39.79bn (£22.7bn) for the year ended 30 June, an 8% increase on the $36.84bn made last year.

Microsoft has announced record sales of $39.79bn (£22.7bn) for the year ended 30 June, an 8% increase on the $36.84bn made last year.

The company also posted a big increase in net profits, partly as a result of lower legal bills and bigger tax benefits compared with last year. For the year, net profits increased to $12.25bn from last year’s $8.17bn.

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This growth will be fuelled by the launch of the company’s next version of Windows, now officially called Windows Vista, and new updates to its Office software suite.

In the fourth quarter Microsoft sales increased 9% to $10.16bn, although operating profits were hit as a result of paying out $756m to settle competition lawsuits. This included almost $630m to IBM to settle a long-running dispute.

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